Competence and organisational principles
Maritime Arbitration Commission (MAC) is an independent permanent specialized arbitral institution which administers disputes falling within its competence in accordance with the Law of the Russian Federation “On International Commercial Arbitration” dated 7 July 1993 and the MAC Statute contained in the Annex thereto, as well as in accordance with the Rules approved by the Order of the President of the RF CCI dated 11 January 2017 and into effect since 27 January 2017.
The MAC administers arbitration of disputes arising out of contractual and other civil law relations in respect of merchant shipping regardless of whether or not the parties involved are subject to the provisions of Russian and foreign law, or only Russian law, or only foreign law. For instance, MAC administers arbitration of disputes arising out of:
1) vessel chartering, maritime transportation, and mixed transportation (river-sea);
2) maritime towing of vessels and other floating objects;
3) maritime insurance and reinsurance;
4) purchase, sale, mortgaging and repairs of marine vessels and other floating objects;
5) piloting, ice channeling, agency and other marine-sailing services for marine and inland waterway vessels, insofar as these operations relate to the sailing of the vessels at sea;
6) engagement of ships in scientific research, mineral development, hydrotechnical and other works;
7) salvage of a marine vessel or an inland waterway vessel by a marine vessel, as well as salvage of an inland waterway vessel by another inland waterway vessel at sea;
8) removal of a sunken ship or sunken property;
9) collision between marine vessels, between a marine vessel and an inland waterway vessel, or between two inland waterway vessels at sea, as well as damage done by a vessel to port infrastructures, navigation means and other facilities;10) damage done to fishing nets and other equipment for extracting (fishing) water bio-resources and other damage caused in the process of commercial fishing.
Appendix No 1
to Chamber of Commerce and Industry of Russian Federation
Order No 5 dated 11.01.2017
REGULATIONS ON ORGANIZATIONAL PRINCIPLES
OF ACTIVITY OF MARITIME ARBITRATION COMMISSION
AT THE CHAMBER OF COMMERCE AND INDUSTRY
OF THE RUSSIAN FEDERATION
Notice: Only the Russian text of the Regulations is officially approved by the Chamber of Commerce and Industry of the Russian Federation. In case of discrepancies between Russian and English texts the Russian text shall prevail.
§ 1. Maritime Arbitration Commission
1. Maritime Arbitration Commission at the Chamber of Commerce and Industry of the Russian Federation (hereinafter referred to as “MAC”) is an independent, specialized permanent arbitral institution operating in the following areas:
- administering international commercial arbitration compliant with the Russian Law No 5338-I dated 07.07.1993 ‘On International Commercial Arbitration’;
- administering arbitration of other disputes envisaged by international treaties of Russian Federation or federal laws, and;
- execution of certain administering functions with regard to ad hoc arbitration.
2. MAC may also administer arbitral proceedings compliant with Federal Law No 382-FZ dated 29.12.2015 ‘On Arbitration in the Russian Federation’.
3. Arbitration administering functions shall be executed by relevant bodies and authorized officials of MAC.
4. MAC comprises the General Meeting of listed arbitrators, the Presidium, the Nomination Committee, the President, the MAC Vice-Presidents, and the Secretariat.
5. MAC is headquartered in Moscow, Russian Federation.
6. The Chamber of Commerce and Industry of Russia shall approve the Regulations on Organizational Principles of the MAC Activity, the MAC Rules, the List of Arbitrators, the Regulations on Arbitration Costs, the MAC Schedule of Remuneration and Fees, and the Regulations on Execution of Certain Ad Hoc Arbitration Administering Functions by Maritime Arbitration Commission at the Chamber of Commerce and Industry of the Russian Federation (ad hoc Arbitration), as well as shall assist the MAC activity in other ways.
§ 2. Resolution of procedural issues
1. Procedural aspects of arbitration must be resolved by an arbitral tribunal and/or before the arbitral tribunal is formed, by relevant bodies and authorized officials of MAC. Such issues may also be resolved by the presiding arbitrator in case he/she is authorized to do so by the parties or other members of the arbitral tribunal.
Rulings shall be given in regard to procedures of the arbitral proceeding.
2. An arbitral tribunal shall decide whether a dispute, a part of claims, or particular parties fall under its jurisdiction.
An arbitral tribunal may give a separate ruling in regard to its jurisdiction before considering claim on the merits, or it may decide on this issue in the arbitral award.
3. In case the question of MAC jurisdiction over a case arises before an arbitral tribunal is formed, then MAC Presidium may suspend the proceeding for all or a part of some claims and for all or some parties if lack of MAC’s competence to administer the claim either fully or partially is conclusively established.
The Presidium is not required to give any reasons to its decision.
4. An arbitral tribunal shall make a decision on its jurisdiction in the event that the Presidium does not order termination of the arbitral proceeding, as prescribed by Clause 3 herein. The fact that the Presidium considers issues indicated in Clause 3 herein but does not order to terminate the proceeding does not predetermine an arbitral tribunal’s decision on its jurisdiction.
5. A party shall declare a lack of the arbitral tribunal’s jurisdiction within 30 days since the date it receives a copy of the claim. A statement that an arbitral tribunal exceeds its jurisdiction shall be made once a party establishes that the tribunal addresses an issue that falls outside its jurisdiction. Objections to the hearing of a counterclaim or a set-off within the same proceeding and consolidation of several claims into a single proceeding must be raised within 30 days after a party knows or should know about this circumstance.
In either of these cases, an arbitral tribunal may accept a statement made in a later period if the delay is justifiable.
§ 3. Arbitrators
1. Arbitrators must be elected or nominated from among individuals possessing requisite specialized knowledge in settling disputes within MAC jurisdiction. Arbitrators must be impartial and independent. They must not represent parties to the proceeding.
2. A person assuming the duties of arbitrator shall complete and sign a declaration on a form, approved by the Presidium, stating his/her consent to assume and fulfill the duties of arbitrator, and shall notify the Secretariat of any circumstances likely to cause justified concerns about his/her impartiality or independence with regard to the dispute in the examination of which his/her participation is contemplated as well as of any other legal or factual circumstances which may hinder his/her performance as an arbitrator.
An arbitrator shall immediately notify the MAC Secretariat about any circumstance of the kind as soon as he/she become aware of it in the course of the arbitral proceeding. The MAC Secretariat will notify the parties about such circumstances and shall set deadlines for their comments.
A person assuming the duties of an arbitrator shall immediately submit a brief personal profile to the MAC Secretariat, including information about education, current and former professional activity, unless this information has been submitted to the MAC Secretariat in the previous period or the information has been modified. The MAC Secretariat shall share the information with a party at the latter’s request.
3. In case a person elected or nominated arbitrator fails to comply with Clause 2 herein within 15 days since receiving the MAC Secretariat’s notification about election/nomination, unless the MAC Secretariat postpones the deadline due to particular circumstances, the person shall be deemed to have rejected arbitrator’s functions and his/her election/nomination shall be declared null and void.
4. Arbitrators’ compliance with the requirements herein shall be provided in accordance with the Regulations on Arbitrators’ Impartiality and Independence approved by the RF CCI.
5. Relationship of arbitrators with parties to an arbitral proceeding and the RF CCI shall be determined by applicable arbitration laws. No labor or civil law contracts shall be concluded pertaining the execution of their functions.
6. Unless the Regulations provide otherwise, an arbitrator shall stand for any member of an arbitral tribunal, including the presiding arbitrator, or the sole arbitrator, as well as the reserve presiding arbitrator, the reserve sole arbitrator and the reserve arbitrator.
§ 4. Lists of arbitrators
1. The RF CCI shall approve for a period of six years the list of recommended MAC arbitrators indicating the first, middle (if any) and last name of arbitrators, their education, current employment, academic degree and title, specialization, and foreign languages proficiency. The prior list of arbitrators shall stay in effect until a new list is approved.
2. The Nomination Committee shall nominate arbitrators exclusively from the list.
3. Persons who are not listed as arbitrators may also perform arbitrators’ functions unless MAC Rules provide otherwise.
§ 5. General meeting of arbitrators
1. Persons listed as the arbitrators shall participate in the General Meeting of Arbitrators.
The General Meeting of Arbitrators shall retain its powers until a new list of arbitrators is approved.
2. The General Meeting of Arbitrators shall, in particular, elect members of the Presidium and the Nomination Committee. Decisions shall be made by a simple majority of all listed arbitrators.
3. Unless the Regulations and applicable arbitration laws provide otherwise, the General Meeting of Arbitrators shall make decisions by a simple majority on condition it is attended by at least half of listed arbitrators. In-person and absentee voting shall be allowed, and arbitrators may submit their votes in writing.
4. The General Meeting formalizes its decisions with a protocol, which, in particular, indicates the outcome of voting. The Chairman and the Secretary of the General Meeting shall sign the protocol.
§ 6. Presidium
1. MAC President and two Vice-Presidents are included in the Presidium ex-officio, in addition to three persons elected by the General Meeting for a period of six years from the list of arbitrators and a person nominated by the President of the RF CCI. MAC President chairs the Presidium.
The current Presidium shall continue its activity upon the expiry of tenure until a new Presidium is elected.
Executive Secretary of MAC shall participate in the Presidium meetings in an advisory capacity of Secretary of the Presidium.
2. Presidium shall operate within limits of its jurisdiction prescribed by the Rules and Regulations, including but not limited to analysis and summarization of arbitration practice, enforcement of these Regulations and other MAC Regulations and Rules, as well as dissemination of information about the MAC activity, international relations, etc.
3. Presidium shall make decisions by a simple majority on the condition that at least four members of the Presidium, including the Presidium Chairman, participate in the meeting. In the event of vote parity, the Presidium Chairman has the ultimate voice.
Presidium shall formalize its decisions with a protocol. The Chairman and the Secretary of the Presidium shall sign the protocol.
4. In urgent situations, the Presidium may adopt resolutions by means of absentee voting, with the vote outcomes to be formalized in the minutes.
5. No members of the Presidium shall speak out or vote on resolutions adopted by the Presidium if there is a conflict of interest, in particular if such resolutions relate to arbitral proceedings in which they take part.
6. The Presidium may reassign some of its functions to the MAC President and Vice-Presidents.
§ 7. Nomination Committee
1. Nomination Committee shall nominate, disqualify and terminate powers of arbitrators. The Nomination Committee shall be formed for a period of six years and shall operate until a new committee is elected by the General Meeting of listed arbitrators.
2. Nomination Committee shall consist of four persons elected by the General Meeting from the List of Arbitrators and one person appointed by the President of the RF CCI.
3. Committee shall be reshuffled at least by a third, proportionately to the number of elected and appointed members, within the first three years after the election. Elected members of the Nomination Committee subject to rotation shall be designated by listed arbitrators. Appointed members of the Nomination Committee subject to rotation shall be designated by the President of the RF CCI.
The same person cannot be a member of the Nomination Committee for three years after his/her rotation.
4. Nomination Committee shall elect its Chairman and Vice-Chairman by a simple majority. The Chairman shall supervise the activity of the Nomination Committee. The Vice-Chairman shall supervise the activity of the Nomination Committee in his/her absence.
5. MAC President and Vice-Presidents may assume an advisory role in the Nomination Committee meetings.
MAC Executive Secretary or his/her deputy may take part in Nomination Committee meetings in the advisory capacity of the Nomination Committee Secretary.
6. Nomination Committee has the authority to nominate, disqualify and terminate powers of arbitrators.
7. Nomination Committee shall make decisions by a simple majority on condition of the turnout of at least half of its members. In the event of vote parity, the Nomination Committee Chairman has the ultimate voice.
Nomination Committee shall formalize its decisions with a protocol. The protocol shall be signed by the Chairman and the Secretary of the Nomination Committee.
8. Nomination Committee may decide on urgent cases by means of absentee voting, and the vote outcomes shall later be formalized in the minutes.
9. Nomination Committee members shall abstain from participating in a debate and making of a decision if there is a conflict of interest, such as in a case when they are engaged in related arbitral proceedings.
10. Nomination Committee may reassign some of its functions in the nomination of arbitrators to the MAC President and Vice-Presidents in urgent cases.
§ 8. MAC President and Vice-Presidents
1. President of the RF CCI shall appoint MAC President and two Vice-Presidents for a period of six years from the list of arbitrators.
The current MAC President and Vice-Presidents shall continue to operate upon the expiry of tenure until a new MAC President and new Vice-Presidents are appointed.
The same person cannot be appointed the MAC President for more than two consecutive terms since the moment the Regulations take effect.
2. MAC President shall make every effort to operate in the best interests of MAC and shall act on behalf of MAC inside and outside Russian Federation.
MAC President shall administer arbitration and address other issues pertaining to MAC proceedings unless they fall under the competence of other MAC bodies and authorized officials or an arbitral tribunal in accordance with these Regulations and other MAC Rules and Regulations.
3. MAC Vice-Presidents shall administer arbitration in the procedure prescribed by these Regulations and other MAC Rules and Regulations.
4. MAC President may assign other functions to MAC Vice-Presidents.
5. MAC Vice-Presidents shall act in the MAC President’s stead on his/her orders and in his/her absence.
§ 9. MAC Secretariat
1. Secretariat shall fulfill the duties in accordance with the present Regulations for administering arbitration of disputes considered at MAC including the duties related to organizing arbitral proceedings and relevant paperwork.
2. Secretariat shall be headed by the Executive Secretary of MAC to be appointed by the President of the RF CCI. The Executive Secretary of MAC shall have a degree in law and be fluent in English.
3. MAC Executive Secretary shall have two deputies appointed by the President of the RF CCI.
4. A deputy shall act in the MAC Executive Secretary’s stead in his/her absence.
5. MAC Executive Secretary and his/her deputies shall administer arbitration processes on the basis of these Regulations and other MAC Rules and Regulations and shall be subordinated to the MAC President and Vice-Presidents.
§ 10. Reporters
1. Either MAC Executive Secretary or the deputy of the MAC Executive Secretary shall appoint a case reporter. The appointed case reporter must keep minutes, attend in-camera meetings of the arbitral tribunal, and fulfill instructions of the arbitral tribunal given in relation to an arbitral proceeding.
Unless the proceedings are terminated before an arbitral tribunal is formed, the arbitral tribunal is requested to propose a candidate for the role of a case reporter.
2. The list of reporters shall be approved by the Presidium and regularly updated. Reporters shall have a degree in law, and, as a rule, be fluent in a foreign language.
3. An arbitral tribunal or a sole arbitrator may appoint a person, who is not listed as a reporter with the consent of the MAC President in case this person meets the requirements specified by Clause 2 herein.
4. An arbitral tribunal or a sole arbitrator may not appoint a case reporter, if there is consent of the MAC President.
§ 11. MAC offices
1. MAC may open offices outside of its registered seat. MAC Presidium shall decide on opening MAC offices.
2. An arbitration agreement submitted to a MAC office shall be regarded as an arbitration agreement submitted to MAC.
A dispute of the kind shall be arbitrated in accordance with these Regulations and other MAC Rules and Regulations and shall be administered by the MAC’s authorized bodies and officials.
3. The place of arbitration shall be the seat of MAC office unless MAC President decides otherwise, depending on circumstances of the case.
4. Executive Secretary of a MAC office shall be a member of MAC Secretariat.
5. The activity of the MAC offices is supported by branches (representative offices) of the RF CCI established specially for this purpose.
6. MAC Presidium may terminate the activity of a MAC office.
§ 12. Exclusion of liability
Arbitrators, reporters, experts engaged by an arbitral tribunal, members of the MAC bodies and authorized representatives, the RF CCI and its employees shall not be liable to the parties or third persons for the failure to execute or improper execution of their functions in connection with arbitral proceedings unless arbitration law imperatively provides otherwise.
§ 13. Storing of materials in proceedings
Arbitral awards, rulings terminating arbitral proceedings and other materials shall be stored in MAC for five years since the final date of the relevant proceedings.
§ 14. Validity of Regulations
The Regulations shall take effect on the day they are deposited with the authorized federal executive agency.